Challenges and Opportunities for the Wealth Sector in China

SynopsisThis report is the result of WealthInsight’s extensive research covering the HNWI population and Wealth Management industry in China.

Summary

This report is a thorough analysis of China’s Wealth Management and Private Banking sector, and the opportunities and challenges that it faces. In addition to providing a comprehensive and robust background of the Chinese economy, including, uniquely, detailed analysis of economic and political risks to HNWI wealth creation, the report provides robust projections of the volume and wealth of China’s HNWI.

Scope

The report features:

• Independent market sizing of China’s HNWI
• Details of the development, challenges and opportunities of the Wealth Management and Private Banking sector in China
• Current insights into the drivers of HNWI wealth
• Family office information

Reasons To Buy

• The WealthInsight Intelligence Center Database is an unparalleled resource and the leading resource of its kind. Compiled and curated by a team of expert research specialists, the Database comprises up to one hundred data-points on over 100,000 HNWI, private banks, wealth managers and family offices around the world. With the Database as the foundation for our research and analysis, we are able obtain an unsurpassed level of granularity, insight and authority on the HNWI and wealth management universe in each of the countries and regions we cover.
• Comprehensive forecasts to 2015.

Key Highlights

• There are currently 1.3 million HNWIs in China with a combined wealth of US$4.3 trillion, which equates to 26% of the total wealth held in the country.
• WealthInsight expects HNWI wealth to increase at a CAGR of 14.7% over the forecast period to reach US$7.5 trillion in 2015, while volume will grow at a CAGR of 13.5% to reach over 2.1 million in 2015.
• Our research shows that over 50,000 Chinese HNWI are looking to move abroad each year. Indeed, much of the frothiness in Hong Kong’s property market is due to demand from Chinese HNWI, who buy luxury homes in Hong Kong in order to gain Hong Kong citizenship.
• According to our analysis, HNWI assets under management (AuM) in China currently stand at approximately 17% of investable assets – US$750 billion. This is mainly made up of funds managed by asset managers. We anticipate that HNWI AuM will grow at a CAGR of 25% per year from 2011 to 2015, and that total HNWI AuM in China will stand at US$1.5 trillion by 2015.
• We estimate that 9% of Chinese HNWIs currently use private banks and wealth managers. This figure is expected to rise to over 14% by 2015.